WEG Carbon Neutral Program
Within the context of GHG emissions and climate change, in 2022, WEG took an important step creating the WEG Carbon Neutral Program.
The program aims at making efforts to achieve the GHG emission goals established for the entire WEG group. The medium and long-term goals are to reduce 52% of its operational emissions by 2030 and reach Net-zero in 2050, using 2021 as the base year. In addition, the program sets out guidelines, actions and responsibilities, making clear to its stakeholders its commitment to work to overcome the challenges of fighting global warming and climate change, an important subject for the company.
The global goals of the WEG Carbon Neutral Program were established using internationally accepted methodological criteria and in line with the NDCs (Nationally Determined Contribution), which refer to government commitments to reduce GHG assumed by the signatory countries of the Paris Agreement.
Goals
2030 Reduce GHG emissions by 52%
2050 Reach Net-Zero
WEG Global Scope 1 and Scope 2 Emissions Base Year 2021.
Access here the GEE WEG Inventory Verification Letter (ISO 14064-1)
Main actions to reduce emissions
To choose and prioritize GHG reduction projects, WEG uses the Marginal Abatement Cost Curve (MACC) and Return on Investment (ROI) methodology. We are committed to phasing out investments in carbon-intensive assets.
Scope 1: Main reduction projects
- Replacement of natural gas boilers with electric ones;
- Replacement of gasoline with ethanol;
- Repairs to boiler drains;
- Replacement of natural gas forklifts with electric ones.
Scope 2: Use of renewable energy (Scheduled to 2024)
It is part of the strategy of the WEG Carbon Program to have 100% renewable energy by 2030.
- Brazil 90% and Global 75% Renewable sources
In total, in 2023, more than 800 projects were mapped around the world, demonstrating the scope of the Company's efforts to achieve its targets.
GHG REDUCTION TARGETS AND VARIABLE COMPENSATION
Considering the scope of this challenge, the responsibility for achieving the targets involves the entire company, and is addressed at strategic, tactical and operational levels. GHG emission reduction targets are broken down annually for the business units according to the results of the previous year's inventory and are part of the WEG Quality and Productivity Program (PWQP), an internal target program that impacts the variable compensation of employees, and also the target program for executives.
Reduction Target (2023): Achieve 90% of Scope 1 + 2 emissions in relation to the 2021 Base (Reduce 10%)
Target status: Achieved
Reduction Target (2024): Reduce 10% of Scope 1 emissions in relation to 2023 emissions (Approved projects)
Target status: In progress
Task Force for Climate Disclosure (TCFD)
WEG considers the recommendations and guidelines of the TCFD in its structure. For more information, access the disclosure below.
